Federal Council takes note of substantive conclusion of Swiss–EU negotiations Freitag, 20. Dezember 2024 - 16:17
Bern, 20.12.2024 - At its meeting on 20 December 2024, the Federal Council took note with satisfaction the material conclusion of negotiations between Switzerland and the European Union (EU). It noted that the Swiss delegation, led by chief negotiator Patric Franzen, has met the objectives set under the negotiating mandate. The Federal Council has instructed the relevant departments to undertake the preparatory work needed to formally conclude negotiations.
The Federal Council noted that the chief negotiators for Switzerland and the EU have materially concluded talks with a positive outcome. It wishes to thank the entire negotiating team for its important work. Since 8 March of this year, when the Federal Council adopted the negotiating mandate, 197 negotiating sessions have been held. The material completion of talks is a major step towards the formal conclusion of negotiations, scheduled for next spring, when both chief negotiators will initial the final text of the agreements. In the meantime, Switzerland will continue to work with the EU on putting the documents into final legal form and the translation process. At national level, discussions with institutional partners (the cantons and Parliament) and social partners will be completed in parallel. Finally, the federal departments involved will also need to complete the necessary legislative work.
Aim of the negotiations
The government's aim was to consolidate and further develop the bilateral approach with the EU. In the face of geopolitical instability and global crises, it is a strategic necessity for Switzerland to build stable, predictable relations with the EU and, in particular, with its neighbours. Developing trade, cooperating on scientific projects and jointly addressing current challenges are vital to Switzerland's security and prosperity. For nearly 25 years, the bilateral approach has contributed substantially to Switzerland's success. It is essential to continue along this path, benefiting from stable and legally clarified relations.
Package approach
In 2021, the Federal Council decided not to move ahead with the institutional framework agreement and to continue the bilateral approach, opting to negotiate single market access on a sector-by-sector basis. On 23 February 2022, it therefore decided to negotiate a package of measures, using a vertical approach aimed at anchoring the institutional issues in the individual agreements and achieving a balance of interests. The Federal Council also sought new agreements on electricity, food security and healthcare as well as cooperation agreements on research and education. Furthermore, it expressed its willingness to discuss continued Swiss contributions to ensure EU cohesion as part of the negotiating package.
Exploratory talks and negotiating mandate
The exploratory talks with the EU commenced in March 2022 and concluded at the end of October 2023. The 'Common Understanding' reached outlined the broad goals for each element of the package identified by the Swiss and EU delegations. On 15 December 2023, the Federal Council adopted a provisional negotiating mandate based on the Common Understanding. It also decided to launch consultations on the relevant issues with institutional, social and economic partners in Switzerland. At its meeting on 8 March 2024, the Federal Council approved the definitive negotiating mandate, which took account of consultations with the Foreign Affairs Committees (FACs), other parliamentary committees, the cantons and input from social and economic partners. All documents relating to the negotiations, including the Common Understanding and definitive negotiating mandate, were published at this stage.
Negotiations
The Swiss delegation led the negotiations on the basis of the objectives set under the negotiating mandate. Alongside the negotiations, over 150 consultations were conducted with the cantons, parliamentary committees, social partners and economic partners in Switzerland. This work was coordinated through a project organization set up by the Federal Council in September 2022. The Federal Council was updated regularly on progress, while high-level political dialogue was maintained with the European Commission. At the same time, domestic policy actors were informed of progress at regular intervals.
Outcome of negotiations
The Federal Council notes that the objectives set for each area of the negotiating mandate have been met. The successful outcomes of the negotiations, which are in Switzerland's interests, clear the way for implementation of the package-based strategy.
Provisions on institutional issues have been incorporated directly into the single market agreements, while rules on state aid only apply to three specific areas: air transport, road transport and electricity. The objectives regarding the free movement of persons have been met: maintaining an immigration system based on economic needs, limiting the impact on social security schemes by deploying effective mechanisms to prevent abuse, and respecting the provisions of the Federal Constitution governing expulsion for criminal offences. Switzerland also concretized the safeguard clause to address any unexpected effects of free movement. Moreover, long-term wage and working conditions for posted workers have been secured, maintaining the current level of protection.
In addition to those in immigration and wage protection, Switzerland also successfully negotiated exceptions to protect key interests relating to overland transport, agriculture and electricity. Finally, there will be no impact on the public sector.
Transition period
Switzerland and the European Commission have agreed arrangements for cooperation which will apply from the end of 2024 to the date on which the package takes effect.
The transitional arrangements for research and innovation will be fully implemented from 1 January 2025, giving stakeholders in Switzerland near-complete access to calls for tender issued by Horizon Europe, Euratom and Digital Europe Programme.
Switzerland and the Commission have also agreed to cooperate during the transition period with a view to ensuring the effective operation and security of electrical grids and to take joint action to protect citizens from cross-border health threats. They agreed to extend the transitional arrangements for road transport to allow Switzerland to participate in the European Union Agency for Railways beyond 2025.
Switzerland and the Commission will cooperate closely to ensure that the single market agreements currently in effect operate correctly. They will discuss, in particular, the implementation of the Agreement on Mutual Recognition in relation to Conformity Assessment (MRA). Dialogue on financial market regulation, which was resumed on 4 July 2024, will continue.
In accordance with its negotiating mandate, Switzerland has undertaken to pay an additional financial amount reflecting the extent of its cooperation with the EU between the end of 2024 and the end of 2029 in the field of cohesion. This financial commitment for the transitional period amounts to CHF 130 million for each year from 2025 until the end of 2029. This sum will be allocated directly to programmes and projects in Switzerland's partner countries within the EU. It will only be due from the entry into force of the package agreements.
Swiss contribution
During the negotiations, a mechanism was defined for Switzerland to make regular contributions to EU cohesion from 2030 onwards, which had been a key feature of the bilateral approach. As in the past, these contributions will help to fund joint projects in partner countries which also address shared challenges such as migration. The Federal Council agreed an annual payment of CHF 350 million for the period 2030–2036.
Cooperation with the cantons and other partners
In accordance with Article 55 paragraph 3 of the Federal Constitution, the cantons were included in the negotiations, where appropriate, as the Confederation's institutional partners.
The cantons sought to be closely involved in the exploratory talks right from the outset and participated in the negotiations in various tracks. The cantons set out the terms of their support in a statement dated 24 March 2023, subsequently clarifying their position on the negotiating mandate on 2 February 2024. In the light of the outcome of negotiations, the Federal Council noted that the cantons' concerns had been duly addressed.
The government was also briefed on the progress of talks on internal implementation and accompanying measures with the cantons, social partners, economic actors and stakeholders involved in key areas of the package. The Federal Council would like to thank all parties for their constructive collaboration. The departments involved (the EAER, FDJP, DETEC and FDFA) have been instructed to continue discussions and submit their findings to the Federal Council.
Next stages
The work with the EU on legal issues and translations will continue with the aim of finalising the agreements and formally concluding negotiations, at which point both chief negotiators will initial the final text. The material completion of negotiations will make it possible to complete the legislative package and accompanying measures required for implementation.
In cooperation with the FDHA, FDJP, FDF, EAER, DETEC and Federal Chancellery, the FDFA has been instructed to prepare a draft dispatch on the overall Swiss–EU package, including the agreements, amendments to Swiss legislation and accompanying measures. The Federal Council will need to decide whether to launch a regular consultation on the draft dispatch before next summer, with a view to submitting it to Parliament in early 2026.
Legal structure of dispatch to Parliament
The Federal Council's preferred option is to issue a 'stabilisation' dispatch which would cover the agreements aimed at stabilising the bilateral approach (updated existing agreements, state aid rules, participation in EU programmes and Swiss contribution). A separate 'development' dispatch would cover the three new agreements aimed at developing the bilateral approach. The Federal Council will ultimately determine the structure of the package and nature of the referendum once the consultation has been launched. However, the final decision lies with Parliament.
Address for enquiries
For further information:
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The Federal Council
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Federal Food Safety and Veterinary Office
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Federal Department of Economic Affairs, Education and Research
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General Secretariat FDJP
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General Secretariat of the Federal Department of Environment, Transport, Energy and Communications; General Secretariat DETEC
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